This chapter focuses on the nature of linkages and interactivities between the labour market and social protection systems. It describes and discusses several principal labour market and social trends that have an impact on the functioning of social protection systems in terms of their financial viability, effectiveness or the continued relevance of their objectives. Labour mobility is one of the means of overcoming regional imbalances in unemployment. The economic upturn in the European Union resulted in a significant improvement in employment in 1999, particularly for young people aged between 15 and 24, even though their unemployment rate. In the European Union, the employment rate of women has grown four times faster than the rate for men since 1994. The job creation potential of the services sector has been demonstrated by the fact that virtually all net employment growth in Organization for Economic Cooperation and Development (OECD) countries has been due to the rise in employment in services.